Agency Management

By: Barbara Floersch

With a rock-star proposal writer on staff, why spend precious dollars priming the pump? The grant awards are rolling in and all is right with the world. But getting too comfortable with the successful status quo is risky.

Effective programs are more than well designed and more than appropriately funded―they’re culturally competent. Truly effective programs are planned and operated with a high-level of respect for and sensitivity to the groups they’re intended to benefit.

The procurement rules governing purchases made with grant funds changed when the federal Office of Management and Budget (OMB) issued new Uniform Guidance on grant administration (the Super Circular) in late December 2014. The good news is that the one-year grace period the feds gave nonprofit organizations to comply with the new requirements has just been extended to two years.

We often hear that grantseekers aren’t sure whether their organization is eligible for federal grants. The federal government makes thousands of grant awards annually to many types of organizations, and even to some individuals. Don’t write off this important funding source until you’ve examined the possibilities.  Here are a few thoughts to consider.

Beginning in 2015, organizations that expend more than $750,000 in federal funding in any fiscal year will be required to retain an independent auditor to perform a Single Audit. Previously, $500,000 in federal expenditures triggered the Single Audit requirement. While the new threshold is a bit higher, federal funds in the form of grants, pass-through dollars, contracts, and loans add up quickly so be sure you’re ready. This brief primer explains how to select a qualified auditor and provides a simple check-list to guide your selection process.

When the new Uniform Guidance on grant administration is implemented as an interim final rule in late December 2014, the procurement rules governing purchases made with grant funds will change somewhat. Procedures must become more structured, and purchases above $3,000 will have to be accompanied by varying levels of documentation as the dollar value of purchases rises.

Understanding and implementing the new guidance on short notice will be difficult for many nonprofits. That’s why The Grantsmanship Center (the Center) has asked Henry Flood, our Senior Advisor for Grant Administration, to address procurement issues that are raising concern in the nonprofit community.

Here’s a story from the early days of The Grantsmanship Center—a valuable lesson learned in 1972, still relevant today. Norton Kiritz, founder of The Grantsmanship Center, shared this experience with his classes.  Hope you enjoy this brief tale from a class transcript.

Several times each year, people ask The Grantsmanship Center how to evaluate the performance of grant development professionals. Here's what we tell them: